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Technology Stocks : PC Connection, Inc. (PCCC) -- Ignore unavailable to you. Want to Upgrade?

To: General Crude who wrote (139)	1/30/1999 3:37:00 PM
From: phsins	Read Replies (1) \| Respond to of 180

Well worth holding or getting back in! Visited Tracey Turner, Investor Relations, yesterday in Merrimac for an hour and a half. Very informative and very positive. I hold a large long position and plan to hold. Computer problems of last summer are clearly behind them, but there is little doubt that it hurt the stock to have something like that happen in the second quarter out of the gate. Rev's for Q4 already indicate the issue is resolved. While Tracey clearly was very circumspect and professional in her remarks, I would expect Q4 net income to be excellant and an indicator of what is to follow. They have alot of office space to handle expected expansion and are advertising heavily in the southern NH and Boston area for additional staff. Their plan is to hit the 1Billion threshold in '99 IMHO stock will move to 25-28 range in anticipation of earnings to be announced week of Feb. 8th. They consider their principal competition to be NSIT and CDWC, both of which have been public longer than PCCC. It will take some time for PCCC to gain the credibility those two currently enjoy, but there is little doubt in my mind that they will. NSIT and CDWC carry 30+ P/E's, so there is considerable upside potential for PCCC. Tracey also mentioned working with some new analysts to cover the company and was "encouraged". Briefly discussed financials, they are extremely liquid. While nothing specific, she actually pointed out that their strong cash position would enable them to consider acquisitions. Something I have never thought about, but it raises some interesting possibilities. On the subject of internet sales, they are clearly not trying to hype the company as an internet stock. They actually withheld a press release about their auction site because they didn't want to send the wrong message. The auction site isn't worth discussing, but they are pleased with internet sales growth. Understand, however, that their principal thrust is outbound sales where real value added service is plays an important function. PCCC has built and plans to expand a strong base of small and medium size businesses that want support. It is the lifeblood of the company, IMO. At current levels, the stock is cheap and has minimal downside risk, as evidenced by recent support at 18-19 level. IF CONSERVATIVELY they make $1.00 in '98 and 1.30++ in '99, at 30X's the stock is worth $40. As we used to say in the military, it needs time in grade, but will reward those with vision. Maybe sooner than you think! They are clearly in an industry that will see huge growth in the next few years and IMO they will get their share. Good luck to all!